THE CORPORATE CONSTITUTIONALISM APPROACH IN FORMULATION OF CSR

• Main Author: Victor Imanuel Nalle
• Format: Article
• Language: English
• Published: Universitas Indonesia 2015-04-01
• Series: Indonesia Law Review
• Subjects: corporate social responsibility; good corporate governance; corporate constitutionalism; deliberation; stakeholders
• Online Access: http://ilrev.ui.ac.id/index.php/home/article/view/114
• ISSN: 2088-8430; 2356-2129

The 21st century is the era of the development of corporate social responsibility (CSR). It is encouraged by the development of the company as a business and societal entities that balances public and private interests. If there is a balance of public and private interests in the company, the application of CSR should be able to accommodate the public interest. But many companies in Indonesia do not involve the community in the formulation of CSR implementation model. This resulted in the implementation of CSR is often not well targeted. In that context, the theory of corporate constitutionalism becomes relevant theory to answer these problems. The theory of corporate constitutionalism put deliberation as one of the principles to achieve the legitimacy of decision-making in the corporation. Through a process of deliberation formulation of CSR model with the community, not just the interests of shareholders that can be accommodated but also the interests of stakeholders. Thus, CSR can actually be instrumental in the global and local challenges.